The National Electric Power Regulatory Authority (Nepra) has notified changes to the authorised tariff due to differences in fuel charges in respect of K-Electric from July 2016 to June 2019, allowing it to be collected from customers.
The regulator made it possible for the K-Electric to collect these adjustments from the power consumers in the next nine months. Nevertheless, the privatized service has been driven to receive it from all groups of customers except life-line consumers who purchase fewer than 50 units a month.
The decision for these months was made under monthly adjustment of fuel charges, a system designed to change monthly energy charges based on variations in (actually recorded) gasoline, liquefied natural gas (LNG) and coal fuel prices.
Nepra allowed K-Electric to raise fuel charges adjustment (FCA) for six months[ July-Dec 2016] which is Rs1.4596/unit from customers in their January 2020 bills.
Another six months (Jan, Feb March, August, October 2017 and March 2018) the regulator notified its FCAs with the combined impact of Rs1.8619/unit, the authority allowed the company to collect it from consumers in their bills of February 2020. Another seven-month period (July, Sept, Nov, December 2017, and January, April, and June 2018) will receive Rs1.6503/unit FCA from power customers in their March 2020 electricity bills.
Additional additional Rs1.1175/unit would be received from customers in their April 2020 electricity bills for the previous months of April-May-June 2017 and February and March 2018 on account of FCAs.
In comparison, Rs1.4068/unit extra would be paid to the FCA in the months of September-October 2018 and February 2019 in customer bills of May 2020. In June 2020, for the months of March-April-May 2019, Rs0.871/unit would be charged extra by customers because of the FCA that the regulator has agreed.
The regulator also decided that the FCA would be charged in July 2020 for July-August 2018, these months combining Rs1.1664/unit FCA.
Consumers will face the additional charges of Rs1.2005/unit in their bills for August 2020 in August 2020. Depending on the November-December 2018 and January 2019 FCAs, this number was worked out.
The additional Rs1.4748/unit would be collected from customers on behalf of the June 2019 FCA in their September 2020 bill.
K-Electric is to be reflected individually in utility bills on the basis of units sold to retailers in the month to which the change applies. The company will reflect this adjustment to changes in fuel for each month in the month of billing.